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Stock substitution United Therapeutics

United Therapeutics has been rallying for the last month, and
one investor still likes the name.

optionMONSTER's Heat Seeker tracking system detected the purchase
of about 5,700 May 57.50 calls, most of which priced for $2.85 and
the sale of a matching number of May 47.50 puts for $2.05. Volume
was more than 40 times open interest at both strikes.

The position cost about $0.80 and is similar to owning shares in
the drug developer. If the stock continues to climb, the
long calls
will appreciate and the
puts sold short
will lose value--thereby inflating the value of the position--while
the opposite will happen in the event of a drop. Unlike owning
shares, however, the option strategy will track UTHR less closely
as time progresses and expire worthless if it remains between the
two strike prices on expiration. (See our
Education
section)

UTHR rose 0.04 percent to $53.51 in late morning trading. It peaked
at a 52-week high of $59 in October, then plunged late in the month
after the Food and Drug Administration rejected an oral version of
its Remodulin hypertension drug. The shares have been working their
way higher since that selloff.

The bullish trade pushed total option volume in UTHR to 21 times
greater than average so far today.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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